Following recent losses reported by Illovo Sugar and Tongaat Hulett, RCL Foods has become the latest company to record losses which it says are a direct result of Sugar Tax.
The company, which owns Selati Sugar and Rainbow Chicken and is the JSE’s fourth biggest food producer by way of market capitalisation, has said it will have to “write down” R761.9m because of the impact that Sugar Tax has had on its earnings.
The loss amounts to more than double RCL’s profits of R284.1m, calculated by way of “earnings before interest, taxes, depreciation and amortisation”, generally referred to as Ebitda.
The write off had an immediate impact on the company’s stock.
When RCL shareholders woke up yesterday morning they learned that the company’s shares had fallen 10.5% to R9.75, the biggest drop it had ever experienced in under a week.
RCL shares have since recovered by 0.64% to R10.97.
